New Delhi: India’s economic growth outlook continues to be rated as the strongest, with GDP growth expected at 6.7 per cent for 2026-27 on the back of continued resilience in domestic demand, according to the World Economic Forum’s Chief Economists Outlook report.
The Chief Economists’ Outlook for September 2026 has covered 10 areas for its survey, which include the United States, Europe, China, Japan, India, Southeast Asia, Latin America and the Caribbean, the Middle East and North Africa, Central Asia, and Sub-Saharan Africa.
A total of 92 chief economists across public and private sectors contributed to the report. Of the chief economists surveyed, 74 per cent anticipate strong or very strong growth for India, compared with 52 per cent in May, while 98 per cent expect moderate or stronger growth over the next 12 months, the report states.
On unemployment, 70 per cent of chief economists expect no change over the next 12 months, while respondents are divided between an increase (17 per cent) and a decrease (13 per cent).
The unemployment rate among people aged 15 and above declined to 5 per cent in August from 5.1 per cent in July, while labour force participation increased from 55.4 per cent to 55.6 per cent during the same period. “These developments point to relatively stable labour market conditions alongside strong activity, although sustained employment creation remains important,” the report said.
The report also said India’s inflation expectations have moderated since May. As many as 55 per cent of the chief economists expect moderate inflation and 45 per cent high inflation over the next 12 months, compared with 61 per cent expecting high or very high inflation in May.
Consumer price inflation increased to 4.8 per cent in August, moving above the 4 per cent medium-term target while remaining within the 2–6 per cent tolerance range.
“A majority (67 per cent) of respondents expect monetary policy to remain unchanged, while 24 per cent anticipate tightening. The policy rate was kept at 5.25 per cent in August, alongside a neutral policy stance,” the report stated.
Fiscal policy is also expected to remain broadly stable, with 72 per cent anticipating no change and 22 per cent expecting a looser policy. “Strong growth and inflation that remains within the tolerance range are broadly consistent with survey expectations of policy stability,” the report said.
The survey was completed on August 20, before the release of India’s latest gross domestic product (GDP) data on August 31, which pegged growth at 7.8 per cent in the first quarter of FY27. The strong expansion has prompted a series of upward revisions of growth forecasts. Moody’s, for instance, raised its FY27 GDP growth forecast for India to 7 per cent from 6 per cent earlier. The ratings agency cited the resilience of the Indian economy amid the war in West Asia.
(IANS)
